If you're an income investor, then read on! Listed below are two ASX dividend shares that have just been rated as buys by analysts.
Here's what they are saying about these top ASX 200 dividend shares:
Image source: Getty Images
Australia and New Zealand Banking Group Ltd (ASX: ANZ)
The first ASX 200 dividend share that could be a buy is big four bank ANZ Bank.
The team at Citi appear to believe the banking giant would be a great option to an income portfolio. Its analysts currently have a buy rating and $29.25 price target on the company's shares.
Citi was pleased with ANZ's FY 2022 results and particularly its exit net interest margin (NIM). Combined with core earnings momentum, it believes the bank is well-positioned for the future. As a result, it has boosted its earnings and dividend estimates accordingly. The broker commented:
[T]he exit NIM of 1.80% is likely to drive material consensus revenue upgrades, and we think the street upgrades core earnings. We retain our Buy call, with core earnings momentum and benign asset quality.
In respect to dividends, Citi is forecasting fully franked dividends of $1.66 per share in FY 2023 and $1.76 per share in FY 2024. Based on the current ANZ share price of $24.33, this will mean yields of 6.8% and 7.2%, respectively.
Deterra Royalties Ltd (ASX: DRR)
Another ASX 200 dividend share to look at is Deterra Royalties.
It operates a royalty business model which involves the management and growth of a portfolio of royalty assets across a range of commodities. These are primarily focused on bulks, base and battery metals, and include the Mining Area C (MAC) iron ore operation, which is co-owned with BHP Group Ltd (ASX: BHP).
Goldman Sachs is very positive on Deterra. Last month its analysts upgraded the company's shares to a buy rating with a $4.70 price target. It explained:
Upgrade royalty company DRR to Buy (from Neutral) on valuation (~0.85xNAV), 6.5-8% dividend yield, upside at BHP's South Flank mine with the ramp-up ahead of schedule, and no exposure to escalating industry opex and capex.
As for dividends, it is expecting fully franked dividends per share of 31.5 cents in FY 2023 and 26.2 cents in FY 2024. Based on the current Deterra Royalties share price of $4.17, this will mean yields of 7.5% and 6.3%, respectively.
